Question

Kanishk and Lalit are partners with fixed capitals of ₹ 5,00,000 and ₹ 10,00,000, respectively. The profit for the year ending 31st March 2025 was ₹ 3,30,000 before providing for any of the following adjustments: Kanishk is entitled to rent of ₹ 10,000 per month for using his property for business purposes. Lalit is entitled to a quarterly salary of ₹ 20,000. The manager is to be allowed a commission of 5% of net profit after charging his commission.

Based on the above information, you are required to answer the following question:

Net profit for the year will be ______.

Options

• ₹ 2,10,000

• ₹ 2,00,000

• ₹ 1,40,000

• ₹ 3,30,000

Answer 1

Net profit for the year will be ₹ 2,00,000.

Explanation:

	₹
Profit for the year	3,30,000
Less: Rent: ₹ 10,000 × 12	1,20,000
	2,10,000
Less: Manager’s Commission: `2,10,000 xx 5/105`	10,000
Net Profit	2,00,000